Extension to the temporary brake restrictions

Following on from the First Minister’s announcement yesterday to extend the temporary restrictions for another week, grant funding announced last week to support businesses during this, has been increased proportionately to cover this additional period.

COVID-19 Restrictions Fund

For businesses required to close by the new regulations. The grant levels have now been increased to:

• Businesses with a Rateable Value of over £51,000 – was previously £3,000, is now £4,310.
• Businesses with a Rateable Value of under £51,000 – was previously £2,000, is now £2,875.
• Multiple premises upper limit – was previously £15,000, is now £21,000.

Business Hardship Fund

For businesses that remain open but are still significantly impacted by the restrictions. The grant levels have now been increased to:

• Businesses with a Rateable Value of over £51,000 – was previously £1,500, is now £2,155.
• Businesses with a Rateable Value of under £51,000 – was previously £1,000, is now £1,440.
• Multiple premises upper limit – was previously £10,000, is now £14,000.

Furlough

Some more detail was also released on the new support fund to support businesses required to close by the new regulations, who have had to re-furlough staff. At present, employers are now liable to contribute 20% of salary costs for furloughed workers. Therefore, a grant of £1,650 will be available to these businesses to the period up to and including 31 October. Local authorities will be responsible for administering these grants.

It should be noted that the new Job Support Scheme, due to kick in from 1^st November, has also been expanded to support businesses forced to close by law. Main points being:

• Employees will still receive 2/3 of their salary for time not worked, but UK Government will now cover this full cost up to a limit of £2,100 per month. Employers are required to meet Employers NI and auto enrolment pension contributions however.
• Businesses must be closed for a minimum of 7 consecutive days and employees haven’t worked in this period.
• Businesses required to close as a result of a specific workplace outbreak, will not be eligible.

Contingency Fund

As yet, there is still no further detail on the £11m Contingency fund setup to help businesses that need support but don’t fall into the above categories, ie. Soft play centres, etc. Once again, this will take the form of one-off grants from the Local authorities, but nothing has been released on grant levels or eligibility criteria.  As soon as we find out more we will keep you updated.

For more information on any of the above please do not hesitate to contact our team – always here to help and advise.

October 22, 2020

By williamduncan

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